Bitcoin price jumped to a new yearly high above $9,500. BTC/USD traded as high as $9,552 and recently started a downside correction.
Recently, the bitcoin price extended its upward move above the $9,450 and $9,510 levels against the US Dollar. The BTC/USD pair traded to a new yearly high at $9,552 before the bears appeared.
Looking at the 1-hour chart, the price started a downside correction below the $9,440 support area and the 25 simple moving average (1-hours, orange). Moreover, there was a break below the 23.6% Fib retracement level of the recent leg from the $9,112 low to the $9,552 high.
The market data is provided by TradingView, Bitfinex.
More importantly, Bitcoin declined below the $9,440 support and a connecting bullish trend line on the 1-hour chart. It has opened the doors for more downsides below the $9,400 level.
Immediate support is near the USD 9,330 level. It is also close to the 50% Fib retracement level of the recent leg from the $9,112 low to the $9,552 high.
If there are more losses below the $9,330 level, the price is likely to continue lower towards the $9,140 support. The next major support area is near the $8,975 level, below which there is a risk of a larger decline in the coming sessions.
On the upside, the previous support near the $9,440 level is likely to act as a strong resistance for the bulls. Besides, the 25 simple moving average (1-hours, orange) is also near the $9,440 level.
Therefore, bitcoin price must settle above $9,440 and the 25 simple moving average (1-hours, orange) to start a fresh increase. The next key hurdles above $9,440 are near the $9,550 and $9,620 levels.